Summary of the context and overall objectives of the project

Single-photon light sources are a missing component for building photonic quantum technologies. End-goal applications of efficient single-photon sources include quantum networks, quantum cryptography, and quantum simulators, which are disruptive solutions to societal challenges within security and supercomputing. Single-photon sources of high efficiency, purity, and coherence are currently not commercially available and there is a substantial and growing market pull from R&D labs working on photonic quantum technology. The goal of the SME1 Phase-1 project QTOOL is to validate the business proposition and market strategy of Sparrow Quantum A/S, a spin-out from the Niels Bohr Institute in Copenhagen, which is developing single-photon sources of unprecedented quality and performance.

The SME Phase-1 feasiblity study confirmed the overall objectives of the QTOOL project and validated the business plan of Sparrow Quantum. Minor but very important insights were gained from the market analysis and business analysis.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

The tasks listed in the Phase-1 proposal were carried out as planned. A few additional tasks were added in response to the new findings as they emerged in the unfolding of the feasibility study. Specific actions in the feasibility study included detailed segmentation analysis, preparation of marketing material, and in-depth interviews with selected potential customers. The tasks were:1. Market analysis.2. Business analysis.3. Freedom-to-operate analysis.4. Business plan.5. Plan of the innovation project.

The input from customers in our market analysis as well as the additional analyses confirmed the value proposition of SQ and the importance of all key goals of QTOOL. However, key new insights emerged in the course of the feasibility study, in particular the importance of cutting costs of our technology and the demand for systems integration, which were only partially anticipated in the Phase-1 proposal

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

The feasibility study was focused on business development in the broadest sense but did not include technical work. The potential impact of quantum technologies is very large within areas such secure communication and quantum computing.